Thanks for the response. For others having this issue I did find the right audio drivers. The correct drivers are realtek ALC888 for XP 12/10/07, but I had to find read the microscopic print on the audio chip on the motherboard to figure that out.

If you have the exact same computer/motherboard, you may try installing the driver manually, by pointing the ALC888 driver to the device.
Ctrl-panel->System->device manager->right click the device->Update driver->no not this time->Install from list or spec. location->Don't search->Have disk->Browse for the place
where you have the ALC888 driver pack unzipped(ie use the .zip pack from realteks site, not the .exe.)->OK.

Hey guys! I had the same problem as you.. got vista installed when I bought the comp. Hate that OS so decided to try the new windows 7 and since that was no better I downgraded to my favourite win2003 srv. Problem was to find the drivers as u know. And like the rest of you the audio drivers where the last I found.. though.. I am not sure I DID find them.. heh. You see, if I look in Device Manager it still says I have an audio hardware with faulty drivers. I did not ever realize what driver it was that finaly worked.. but the sound works anyway. And very good at that. No problems at all.. So I'm letting it be like this. Didnt get any further anyway..

So I just say this as a tip. Make sure it aint working by actually play a sound before you discard the drivers.